Slide 1: Full Year Investor Presentation
Full Year Investor Presentation For the year ended 30 June 2015 26th August 2015 Tim Power – Chief Executive Officer | Jonathan Kenny – Chief Financial Officer
Slide 2: Agenda
Agenda 01 Overview 3 02 Financials and KPI 9 03 Key Product Update 18 04 Recap and Outlook 23 Investor Presentation 2
Slide 3: Overview
Overview Investor Presentation 3
Slide 4: 2015 Highlights
2015 Highlights FY15 Results ahead of prospectus forecast • Revenue of $44.8 million (vs prospectus $43.8 million), up 23% pcp • EBITDA of $16.9 million (vs prospectus $16.4 million), up 30% pcp • NPAT $10.8 million (vs prospectus $9.7 million), up 28% pcp • EPS of 8.1 cents, up 28% • Final Dividend
Slide 5: 3P Learning Overview
3P Learning Overview organically grown 10X revenue over in 8 Years 17,000 A community of schools Global team of 300 across the world educators, 5.3 million engineers, product designers and other students A Powerful personnel based in aligned with Partnership with 11 countries over 40 UNICEF that has
Slide 6: Delivering Growth – Key Metrics
Delivering Growth – Key Metrics $44.8M Revenue $16.9M EBITDA NPBT $14.4M (up 23% pcp) (up 30% pcp) (up 27% pcp) $8.33 $27M $30.9M $10.8M Deferred 8.1c NPAT ARPU EPS Cash Revenue (up from 6.3c) (up 28% pcp) (up 38% pcp) EBITDA 300 33% Debt 1.8c Margin 5.3M Licences Employees ROE Free Dividend 37.8% (
Slide 7: 2015 Product Highlights
2015 Product Highlights • Over 2 million unique tablet app downloads, 82% growth year on year. • 2015 Major International Awards - • BETT International Digital Resource • BETT Best Whole Course Curriculum Content • US Family Choice • iAward for EdTech Innovation of the Year • British ERAs shortliste
Slide 8: 2015 Update on Americas Strategy
2015 Update on Americas Strategy • Americas expansion ongoing with 931,000 licences and 74 district customers as at 30 June 2015. 50 • Continued investment in resources with 41 total 45 Significant market opportunity K-12 student enrolments (m) 40 staff at 30 June 2015. K-12 Students in OECD 35 30 •
Slide 9: Financial Information and KPIs
Financial Information and KPIs Investor Presentation 9
Slide 10: Revenue by Geography
Revenue by Geography Revenue growth of 23% with ANZ growing at 22% and Americas at 35%. Revenue split by geography A$ million FY11 FY12 FY13 FY14 FY15A FY15F FY2015 FY2014 Growth ANZ 19.6 22.2 24.2 24.6 30.1 28.9 30.1 24.6 22% EMEA 3.1 4.5 5.5 8.6 10.3 10.3 10.3 8.6 19% Americas 1.1 1.7 2.3 3.3 4.4
Slide 11: Revenue by Product
Revenue by Product Growth across all product lines with Mathletics making the largest contribution and Copyrights and Sponsorships revenue also making a contribution. Revenue split by product A$ million FY11 FY12 FY13 FY14 FY15A FY15F FY 2015 FY 2014 Growth Mathletics 20.2 23.2 24.9 28.5 32.9 33.2 3
Slide 12: Licences by Geography
Licences by Geography Americas licence growth of 41% year on year ahead of prospectus and driven by district sales. Balanced by lower than forecast Reading Eggs sales in EMEA. Licences split by geography '000s FY11 FY12 FY13 FY14 FY15A FY15F FY2015 FY2014 Growth ANZ 1,486 2,236 2,500 2,524 2,696 2,7
Slide 13: Licences by Product
Licences by Product Strong performance of all products with consistent growth in total licence numbers. Licence split at 30 June 2015 IntoScience Spellodrome 2% 8% Reading Eggs 19% Mathletics 71% Investor Presentation 13
Slide 14: Pro forma Key Financial Metrics
Pro forma Key Financial Metrics Pro forma * Key Financial Information FY 2015 FY 2014 Var Growth FY15F Var % Revenue (A$m's) 44.8 36.5 8.3 23% 43.8 1.0 2% EBITDA (A$m's) 16.9 13.0 3.9 30% 16.4 0.6 4% NPBT (A$m's) 14.4 11.3 3.1 28% 13.9 0.6 4% NPAT (A$m's) 10.8 8.5 2.3 28% 9.7 1.2 12% EBITDA margin 3
Slide 15: Pro forma Group Performance Overview
Pro forma Group Performance Overview Revenue increased 23%, EBITDA increased 30% and NPAT increased 28% on prior year. Pro forma * Pro forma * $ million, June year end FY 2015 FY 2014 Var Growth FY15F Var Var % Increased salary Total revenue 44.8 36.5 8.3 23% 43.8 1.0 2% costs associated Employee ex
Slide 16: Pro forma Cash Flow
Pro forma Cash Flow Positive cash flow conversion of 129% with significant increases in deferred revenue. Pro forma * $m illion, 30 June year end 2015 2014 EBITDA 16.9 13.0 Non-cash expense (1.1) 0.2 Change in w orking capital 6.0 5.7 Operating free cash flow before intangibles 21.8 18.9 Investment
Slide 17: Statutory Balance Sheet
Statutory Balance Sheet Balance Sheet FY15 FY14 $ million, June year end Cash and cash equivalents 30.9 24.4 Strong operating cash flows and increased billings leading to Trade and other receivables 8.7 5.9 increased cash balance of $30.9 million as at 30 June 2015. Other current assets 0.6 2.4 Tota
Slide 18: Key Product Releases
Key Product Releases Investor Presentation 18
Slide 19: Product update: A year with Mathletics
Product update: A year with Mathletics NEW: Reports - a dedicated and innovative real-time reporting tool for schools. NEW: District Console – Big data reporting tool for large District multi-school organisations, districts and networks. Key element within the marketing strategy to attract high 2m A
Slide 20: Product update: A year with Spellodrome
Product update: A year with Spellodrome NEW: HTML version of Spellodrome – launching August 2015, developed for equal mobile and desktop users. HTML EXPANSION NEW: Major rebranding – updating the look and feel of Spellodrome. development of market for full mobile potential accessibility NEW: New con
Slide 21: Product update: A year with Reading Eggs
Product update: A year with Reading Eggs NEW: Revamp of Reading Eggspress Interface - Introduces simpler navigation to improve the learning journey for students and their teachers. MOBILE ARENA NEW: Mobile ready – iPad and tablet accessibility Release of Launch of expanded to provide the full mobile
Slide 22: Product update: A year with IntoScience
Product update: A year with IntoScience NEW: Science is Electric – brand new electrical circuits topic allowing students to actively explore key concepts by designing circuits, drawing schematics and playing with electrical components. NEW: Teacher tools and reporting - new resources for IntoScience
Slide 23: Recap and Outlook
Recap and Outlook
Slide 24: 2015 Recap
2015 Recap • 3P delivers earnings growth ahead of prospectus forecast. • Americas gaining momentum with 74 district sales in FY2015 and approaching 1 million student licences. • Significant product enhancements with multiple releases each week, recognised by major international awards. • Over 2 mill
Slide 25: Outlook
Outlook • Continuing strong cash flows and revenue growth in line with historical track record. • 3P will continue to invest in sales personnel and infrastructure, particularly in Americas. • Utilise the strength in cash billings and growth in revenues. • Revenue recognition will trail cash flow as
Slide 26: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is a summary of 3P Learning Limited’s (‘3P’) activities and results as at the time of preparation, 26 August 2015. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information